Kenney Company Uses Activity-Based Costing to Account for Its Manufacturing

question 77

Multiple Choice

Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires, and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. There is no direct labor. Additional information follows: What is the cost of assembling per tire?

• A)$15.40
• B)$7.00
• C)$14.00
• D)$28.00

---

Definitions:

Government Regulations

The laws and rules established by governmental bodies that dictate how businesses can operate, aimed at protecting consumers, employees, and the environment.

Behavioral Issues

Behavioral issues refer to actions or patterns of conduct in individuals that are disruptive, harmful, or outside of societal norms.

Knowledge Workers

Individuals whose primary job involves handling or using information and knowledge, often requiring analytical skills and expertise in specific fields.

New Technologies

Recently developed tools, systems, or methods that have the potential to significantly alter how work is performed or industries operate.